Citi Starts Synovus Financial (SNV) at Buy

Citi analyst Benjamin Gerlinger initiates coverage on Synovus Financial (NYSE: SNV) with a Buy rating and a price target of $53.00.

The analyst comments "We are initiating coverage of SNV with a Buy rating. While SNV likely follows the national trend of a somewhat sluggish 3Q24 loan growth outcome, given its numerous lending hires and a branch footprint boasting a stronger than national average GDP outlook – SNV likely generates multi-year loan growth trends that outpace the broader peer outcome. While the back is a little more asset-sensitive than average, we believe the rate cutting cycle likely spurs an improving loan growth trend – ultimately helping to mitigate the relative headwind to NII and NIM (compared to peers). Finally, given its relative size and concentration in key GA and FL metro areas – should core operations have a miss-step, we believe SNV shares are likely to be somewhat cushioned as larger peer banks could potentially view the franchise as needing a larger partner. While this is not our base case, it likely creates somewhat of a valuation floor relative to peers. Bottom Line: Given the solid loan growth outlook, improving expense management trends, and relative discount to peer – we find the current set-up as exceedingly attractive – Launching coverage with Buy rating and a $53 Target Price (25% total return upside)."

For an analyst ratings summary and ratings history on Synovus Financial click here. For more ratings news on Synovus Financial click here.

Shares of Synovus Financial closed at $43.57 yesterday.

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